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Hotel-Motel

Econo Lodge Lake Mills

7614 Oasis Ln, Lake Mills, WI 53551

Listing Price: $1,695,000

Cap Rate
17.93%
Number of Rooms
43
RevPAR
$41
Gross SF
86,684
Price/Room
$39,419
RRM
2.60
Price/Gross SF
$19.55
Year Built
1991

Investment Overview

Marcus & Millichap's National Hospitality Group, as the exclusive representative of the seller, is pleased to present for sale to qualified investors the Econo Lodge located in Lake Mills, Wisconsin. The Choice-branded hotel is offered at $1,695,000 or $39,419 per key and sits on 1.99 acres within Jefferson County on the eastern shores of Rock Lake in southern Wisconsin.

Southern Wisconsin is known for its natural beauty, and this budget-friendly hotel allows travelers to easily reach hiking paths, biking trails, wildlife areas, and golf courses. Situated, with great visibility, off Highway 89 and Interstate 94; the hotel has potential to grow its business from the daily traffic counts that exceed 41,000.

This two-story, 43-room hotel has performed exceptionally well in 2019 and 2020. In 2020, the subject property has achieved a room revenue of $638,023 and has maintained a healthy cashflow with net-operating income of approximately 46.4 percent of total revenues. At a price of $1,695,000, investors should expect to see an unlevered cash-on-cash return around 19.25 percent in year one and around 21.17 percent in year five. Unlevered IRR for the project sits at 31.92 percent while the levered IRR is about 91.18 percent.

Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Investment Highlights

  • Priced Below Replace Cost at $39,419 Per Key
  • 43-Room, Interior Corridor, Economy Hotel Built in 1991
  • Ability for Hands-On Owner-Operator to Decrease Expenses
  • Strong Historical EBITDA

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Vice President/Regional Manager

    (262) 364-1964

    License(s) WI: 56163-90

    Wisconsin

Hotel-Motel

Econo Lodge Lake Mills

Listing Price: $1,695,000

Cap Rate
17.93%
Number of Rooms
43
RevPAR
$41
Gross SF
86,684
Price/Room
$39,419
RRM
2.60
Price/Gross SF
$19.55
Year Built
1991

Investment Highlights

  • Priced Below Replace Cost at $39,419 Per Key
  • 43-Room, Interior Corridor, Economy Hotel Built in 1991
  • Ability for Hands-On Owner-Operator to Decrease Expenses
  • Strong Historical EBITDA

Investment Overview

Marcus & Millichap's National Hospitality Group, as the exclusive representative of the seller, is pleased to present for sale to qualified investors the Econo Lodge located in Lake Mills, Wisconsin. The Choice-branded hotel is offered at $1,695,000 or $39,419 per key and sits on 1.99 acres within Jefferson County on the eastern shores of Rock Lake in southern Wisconsin.

Southern Wisconsin is known for its natural beauty, and this budget-friendly hotel allows travelers to easily reach hiking paths, biking trails, wildlife areas, and golf courses. Situated, with great visibility, off Highway 89 and Interstate 94; the hotel has potential to grow its business from the daily traffic counts that exceed 41,000.

This two-story, 43-room hotel has performed exceptionally well in 2019 and 2020. In 2020, the subject property has achieved a room revenue of $638,023 and has maintained a healthy cashflow with net-operating income of approximately 46.4 percent of total revenues. At a price of $1,695,000, investors should expect to see an unlevered cash-on-cash return around 19.25 percent in year one and around 21.17 percent in year five. Unlevered IRR for the project sits at 31.92 percent while the levered IRR is about 91.18 percent.

Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Exclusively Listed By

Broker of Record

  • Todd Lindblom

    Vice President/Regional Manager

    (262) 364-1964

    License(s): WI: 56163-90

    Wisconsin

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